What’s a Fair Freelance UX Designer Hourly Rate?

It’s hard to pinpoint the fair freelance UX designer hourly rate, mainly because the industry is always changing. You might be surprised but UX design history goes a long way. It might not have been as popular back in the 90s as it is now but it doesn’t mean it didn’t exist.

User Experience or UX does not simply cover websites or computers, it’s pretty much every product that is designed for humans. So, the UX designer’s job is to find out how to relate products to customers. And from that alone, you know that UX design has a very wide scope making it harder to answer the question, “What’s a fair freelance UX designer hourly rate?”

Definitely, each UX designer has a different rate. Even UX designers who are employed by companies have varying salaries, so freelancers can definitely also have diverse rates.

Factors That Affect Freelance UX Designer Hourly Rate

Person drawing workflow or wireframes on paper using an orange pen

To give you an easier time figuring out your own freelance UX designer hourly rate, below are factors that can affect the amount that you can charge:

1. UX Designer Role

First things first, what is your role exactly as a UX designer? In freelancing, you can be a jack-of-all-trades and do everything for UX design, but having a niche is advisable. Not only can it boost your freelancing career but you can also easily determine your freelance UX designer hourly rate. For example, if you are in charge of Wireframes it will definitely have a different rate if you are responsible for creating personas or conducting customer research.

If you are more of an all-in-one UX designer, then you can definitely ask for a higher payment from your potential clients. Since you are a one-stop shop, there will be no need for your clients to hire other UX designers and this can justify your fair rate.

2. Skill Level

Drawing of website design on sticky notes placed on a table along with a mobile phone and pencils.

Getting a fair rate will also depend on your skill level as a UX designer. If you have just started out in this career, of course, you can’t really charge very high. A good way that you can showcase your skill level is by showing your portfolio. There are also freelance platforms where you need to rate yourself. Just make sure you have the real skills to back up your own rating because potential clients will definitely ask you questions or even give you a test during your interview.

3. Experience

Remember that experience and skill are not the same but they do go hand in hand. Maybe you have excellent skills but you haven’t really worked with more than 2 clients. It’s also important to have relevant experience as this can really show potential clients what you can actually do for other people.

A portfolio that contains samples can definitely show your skills but if you show samples that you have done for other clients, this is a huge deal. It’s especially helpful if you have past clients that can give you referrals or ratings on your work. This can definitely kick up your rate as a UX designer.

When it comes to experience, you should also count the number of years you have been working in the industry. Highlight relevant experience and make sure to show that you keep up-to-date with the latest techniques in UX designing.

4. Clients

Sometimes, you don’t really have a say in your rate. There will be times when clients will dictate the freelance UX designer hourly rate and your only option here is to either accept the offer or not. Remember that not all clients are the same. Some can offer a very high rate but they can be very demanding.

There are also low-balling clients that would be better to say no to. The best type of client is the one who can offer you a fair rate and someone who you can collaborate with or work harmoniously with.

5. Educational Background or Training

Woman working on laptop

As a freelancer, you don’t really need a diploma. But in the world of UX design, it can always help to show if you had formal training in Wireframes or User Testing. If you have certifications or have done bootcamp training in UX design, this can be what gives you an edge over other UX designers. It will only be fair to raise your freelance UX designer hourly rate especially if you are subscribed to a UX design certificate that has monthly payment.

Tips to Determine a Fair Hourly Rate for UX Design

Now that you know the factors that can affect your freelance UX designer hourly rate, it’s time to determine the exact number. Below are some tips that can help you out:

Ask around

One of the best things to do is to ask fellow freelancers how much their rates are. If you have former classmates, who would usually have the same skill set or level of experience as you, you can ask for the same rate as they are.

It also helps to check out freelance platforms and see how much gigs are paying. Learning the industry standards can be a helpful gauge to find out if you are charging way too high or if you are lowballing yourself.

Check competitors rates

Another way to find out your rate is to check out your competitors. If they are offering the same services as you are, you can always copy their number.

If you can’t find yourself lowering your rate, then simply add more services. You can also do helpful add-ons that can set you apart from your competitors. For example, offering free, extra revisions on your mock-ups can be very helpful.

Do the math

Another way that you can determine a fair freelance UX designer’s hourly rate is by doing the math. This is not really about your competitors or the industry standards. It boils down to you. Below are 2 questions you need to answer to help you determine your rate:

1. How fast do you work?

Since you are talking about an hourly rate, you need to time yourself. If you work way too fast, then you won’t be paid for all of your hard work—which can then lead to burnout. On the other hand, if you are too slow, clients may not like having to pay for your extra hours if someone can actually do the job faster.

What you can do is to time yourself on how you would normally work. You can make a rate depending on the specific job you are working on. For example, you can charge higher for making storyboards than when you are conducting competitor research. But again, this will depend on your expertise—the speed at which you work should be fair towards your rate.

2. How much money do you need to make a profit?

Calculator on top of coins and paper bills

Freelancing is a business. You need to get paid to be able to keep your business afloat and you can do this by making a profit. You can also look at the money you earn from freelancing the way you would a salary. How much money should you be earning per hour so that you can maintain your lifestyle, to keep yourself from going broke?

You really need to do the math to find out the fair freelance UX designer hourly rate. Again, this is the rate that is fair for you. And not so much reliant on how much other freelance UX designers earn for themselves.

Conclusion

There is no single number or answer to the question, “What’s a fair freelance UX designer’s hourly rate?” You really have to combine all of the factors to get your number. If you find that your fellow bootcamp mates are charging higher, you don’t have to copy them if you are not 100% confident in your skills or if you are aware that you need more experience.

The best way to determine your freelance UX designer hourly rate is by putting yourself out there. Go get clients and do the work. You’ll have a better judgment of what is fair or not once you have a project.

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Kosmo has everything you need to run your freelancing business.

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Kosmo is a free All-In-One Workspace for Freelancers.

Benefits of Time Blocking for Freelancers

Having trouble with your deadlines? It might be time to check out the benefits of time blocking for freelancers. One of the best things about freelancing is you aren’t tied down to a rigid schedule. You won’t get deductions for starting work late. However, you won’t get overtime pay for working into the night.

Freelancing can definitely give you freedom when it comes to your work schedule. However, if you are just starting out freelancing, this can prove to be very challenging. It can also be quite difficult for freelancers who have gotten used to multi-tasking, have trouble focusing, or are easily distracted.

If these sound familiar to you, then it might be time to switch up your schedule.

What’s Time Blocking?

But first, what is time blocking anyway? How is it different from keeping a to-do list or using a time tracker? Before discussing the benefits of time blocking for freelancers, it’s important to define it. Time blocking is a technique for time management wherein you break down your schedule into specific tasks.

To give you a better idea below is an example of a weekly schedule that has been time blocked.

Sample of time blocking

As you can see, tasks are given a specific time block. Normally, freelancers would check emails throughout the day. Or spread out tasks with other things to do. When you use time blocking, you have to focus on just one task in a given specific time. This way, you get to focus solely on said task and not let other things distract you.

For example, if you are a writer who also does social media posts whether for yourself or your clients, you can only do it on Tuesday and Thursday from 9 AM to 12 NN. Apart from that, you should refrain from even opening your Instagram, especially when you have another task scheduled.

Time blocking is able to help people who veer towards multitasking—Multitasking doesn’t work, at least for 97.5% of people. Studies show only 2.5% are able to multitask effectively.

Popular Time-Blocking Options

There are several ways that you can use time blocking. The important thing here is that you have a specific “block” of time for a specific task. As long as the concept is there, you should be able to get the benefits of time blocking for freelancers. Below are some time-blocking options you may want to check out:

Weekly

A weekly time-blocking schedule is one of the most popular options, especially for beginners. An example is shown above. It lays out your entire week so you can easily see what are the important goals or tasks you have to do for each day.

Monthly

Now, there are some people who prefer bigger “time blocks” so they may opt for the calendar-blocking template. Instead of assigning tasks for a few hours, you can also assign tasks per day. So, for example, if you are an artist Monday can be dedicated solely to research or inspiration. Tuesday and Wednesday are meant for sketching and then maybe you take a break and start coloring the following week.

A monthly schedule with daily time blocks can be beneficial for those who can only focus on one task per day. This is especially helpful for larger projects that have a turnaround time of more than a week.

Daily

30 minute time blocking template

Above is a time block template if you prefer to schedule daily. The workday is split into 30-minute increments instead of hours. Daily time blocking is ideal for freelancers who have a lot on their plate and really need to narrow down on various tasks. It is also perfect for those who have a shorter attention span and can’t really dedicate an entire hour or more to one sole activity.

Benefits of Time Blocking

There are so many benefits of time blocking and it’s actually advantageous to more than just freelancers. Below are some reasons that may help sway you to try out time blocking:

1. Boosts Productivity

The trouble with checklists and to-do lists is that they are basically on open time. There really isn’t a schedule, you just know you have to do something so you can cross it out. The trouble with that is, you might end up procrastinating and then just end up trying to cram everything by the end of the day.

With time blocking, these tasks and things to do have an assigned time. It boosts your productivity because you know you need to do something and you also know when you need to finish the said task.

2. Encourages Work-Life Balance

Man using a laptop in a restaurant, one hand holding a mug

One of the drawbacks of freelancing is if you don’t know how to schedule your time, you will definitely have a hard time with work-life balance. Either you find yourself burning out because you just keep on working without breaks or you tend to slack off. Finding a balance is quite difficult but with time blocking, this can be achieved.

When you lay out your plans for the day, you get to see all of your tasks. You will know how many hours you need to work and you can also plan much-needed breaks for your well-being. All you need to do now is to follow the schedule you have made.

3. Keeps You On Track with Your Schedule

Do you find yourself needing to extend deadlines? Maybe you are a procrastinator? Or maybe, you just need more structure in your life and freelancing schedule. The benefits of time blocking go beyond you as a person. It can also help you coordinate with fellow freelancers if you are collaborating. You can also use time blocking to show your clients when you are available or not.

The trouble with some clients is that they tend to eat up your time. But when you explain to them that you have a time-blocking technique, unnecessary calls can be prevented. Maybe they’ll just send you an email, which you can then read on your designated schedule for replying to emails.

4. Helps You See the Bigger Picture

When everything is laid down in front of you, you can have an easier time seeing where your freelancing career is going. It can also be a guide for your freelancing business. For example, if you already see that a project is bound to end after 2 weeks, you can already start searching for new gigs and clients long before it is over. This way, you don’t have any downtime or days when you don’t get to earn money.

5. Improves Work Quality

One of the best benefits of time blocking for freelancers is the chance to improve your work quality. When you dedicate hours to your skill or craft, you get a chance to do deep work. By focusing on your talents, you get to invest in yourself, too.

It’s really not a good feeling to rush through work, just submit deliverables for the sake of meeting deadlines. Freelancing is also about learning and improving yourself.

Conclusion

Woman lying on her stomach, using a laptop on her bed, while drinking coffee

There are definitely more benefits of time blocking and you can discover these as you try the time management technique. The good thing about time blocking is the technique can be adjusted to meet your needs. If 30 minutes is too short for you, you can always make the blocks bigger so as to give you more focus on tasks. If you want to really see the big picture of freelancing, you can even try laying out your plans on a quarterly basis.

The main point of time blocking is that you get to focus instead of multitasking. Don’t be bothered if the benefits of time blocking may differ among freelancers, the important thing is that this time management technique works for you.

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Kosmo has everything you need to run your freelancing business.

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Kosmo is a free All-In-One Workspace for Freelancers.

Tips for Managing Multiple Projects Effectively

If you find yourself managing multiple projects at the same time, and it has started to take a toll on you, then you need to read on.

As a freelancer who wants income stability, you tend to accept several projects at the same time, right? And without a team to delegate work to, you will agree that managing multiple projects can be challenging. Now that you are running your own gig business, while it may feel right that you take on several clients simultaneously, you must maintain the standards of your practice for all your clients. If you fail to manage multiple projects at one time successfully, it may permanently affect your reputation. Luckily, there are tips for managing multiple projects that can help you run your business effectively.

Tips for Managing Multiple Projects

multiple stickie notes on laptop

Gone are the days when you have a secretary or team to help you in your day-to-day activities. Now that you are in the freelance workforce, you will be juggling multiple tasks singlehandedly. Completing a project while handling admin duties is demanding enough. Imagine having to balance your time doing multiple projects! But do not despair; it can be done—if you do it the smart way.

Have a Plan. Strategize.

In every business and life, a good workable plan is always a best practice. Never go in the battle blind, so they say.

1. Design your workflow

One good thing about being a freelancer is that you are not bound by company-dictated workflows and processes. Now, you have the freedom to design your own system based on how you believe you can complete a project best.

Before starting your freelance business, or any project, make sure you have a clear layout of your process from start to finish. Include the small tasks like buying materials, or waiting for approval or request for revision from the client. Have a good estimate of how much time each task will take. This will determine how long it will take you to finish a single project. Then, you will have an insight into how many projects you can reasonably accept.

In designing your workflow, decide on the most efficient option for each process. For instance, take note of stores that offer deliveries and online purchases for your materials. This way, you can do other tasks while waiting for your order instead of going to the store yourself. It will save you a lot of time.

man workflow

Do not underestimate the importance of a consistent and wisely designed workflow. First, it will help you speed up your work because you have a streamlined process that can be a model for all your projects. Second, you will not forget to do a task when you have a workflow in place. The project will go on like clockwork, with fewer mistakes and errors. And last, your workflow will help you see potential risks and obstacles, giving you time to set up a plan for contingencies.

2. Good office setup

One thing you should understand in knowing how to manage multiple projects is that your workspace is as important as your process. Do you have enough table space? Is everything you need within reach or at least in the same room with you? It would be pretty frustrating if you couldn’t find a document because it got mixed up with the other project file because there is not enough table space. Or if you need to run to a different room because the printer is there.

Set up your workspace in a less distracting place and is purely dedicated to your work. Avoid clutter as much as possible. See to it that each project will also have its own safe space. This will reduce the stress of having projects mixed up. If your project is purely digital, the same goes for having separate file folders for each project. It will be easier to manage multiple projects if they are efficiently sorted.

Make sure that all your resources are on hand. Things like office supplies or art materials should be sufficiently stocked so you do not have to stop what you are doing to run to the store to buy, let’s say, red paint. So before starting on a project, make sure you already have everything you need so you can run through the project’s completion smoothly.

3. Possible people support

Finding people to support you is okay, especially when you are so worked up in managing multiple projects. It is definitely not a bad idea to see family and friends who can help you out. A simple request to help you, say, pick up your pre-ordered item from the store, goes a long way. Or asking a family member to be your assistant on your photoshoot day in exchange for a free dinner is not a bad idea, right?

Set expectations.

Do not bite off more than you can chew. Yes, that expression is very applicable in this situation. You should set expectations for yourself on what you can manage and for your clients when it comes to deliverables.

1. To yourself

Once you have designed your process flow, you will know your limits. Be realistic and practical. Accept what you can adequately handle. Do not overwork yourself. Sometimes, when you work so much, you may experience creative blocks. This will cause delays and errors in your project. Plus, imagine the stress! So, yes, set expectations for yourself. Especially when you are just starting and still establishing the best system for your business.

Pro tip: Do not forget to take breaks during the day to recharge your body and mind.

2. To your client

Again, this is where your workflow will come in handy. Before accepting succeeding projects, check your timelines and current workload. Then, analyze it with your workflow so you can tell your client how long the project will take. Setting their expectations will put less pressure on you to complete a project because you have already allotted a suitable timeframe for each project.

Pro tip: Do not over-commit! It’s better to set a later delivery date and deliver earlier than miss a deadline.

Be organized and stay focused.

leaf on focus

It is easy to say to be organized and stay focused. Every trick in the book will tell you that. But what is the best way to be organized and keep your focus? Check these out:

1. Have a project abstract.

Have an overview of each project. Know the projects’ demands, timelines, and end goals. Managing multiple projects will be less challenging if you know each project’s requirements. In doing so, you get to see the resources you need to allocate, the unique and similar tasks each project demands from you, and which ones will take the most time to complete.

If you are a photographer and you see that two of your projects need to be done in a studio, then you can schedule one photoshoot in the morning and one in the afternoon. This will save you transportation time and cost. And maybe get a discount from the studio rental for renting it the whole day. This is one example of the benefits of having a clear overview of your projects.

2. Prioritize.

So, you have a workflow and project overview, and now you can prioritize tasks accordingly. You already know which tasks need to be done first. It wouldn’t be wise to start on a task that you cannot finish because it needs another step that you still have not done. Now that’s a waste of your valuable time! In the same way, determine the more flexible tasks. Make it a habit to do time blocking to help you manage your priorities.

3. Establish your database.

Whether in hard copies or on your computer, make sure you keep a record of your projects’ documentation. These are easy references for future projects. If you have accepted a project almost identical to a previous one, you can now have a model you can use. And if you have been in the practice for some time now, having a record of your suppliers will come in handy, for you will know where to get your materials and compare prices as well. You don’t need to spend hours browsing through the internet anymore.

4. You need your tools.

Kosmo joining page

And, of course, the most important tip of all: have the right tools for managing projects. Freelance project management software and apps offer everything you would need to run your business effectively. Yes, there are must-have software freelancers should consider investing in.

Imagine this: managing multiple projects with just one software. Convenient, isn’t it? A freelance project management software like Kosmo has features like a client directory and file folder per project. In each project folder, you can integrate all your tasks like creating and sending proposals and contracts, time-tracking per task, invoice generation, income tracker, and saving other documents. Using a project management platform will absolutely help you manage your multiple projects.

Track and review

With the help of tools like project management software, you can track and review your processes and see where you will need adjustments. Your workflow can be adjusted, especially if you observe that one task is taking longer to finish than expected. Having multiple projects mean handling different kinds of clients. Expect that one system may not work as successfully as others.

The advantage of freelancing is that your systems and processes can constantly be amended based on how you can efficiently manage your business. Do not be trapped in a system that is not fit for you just because it is the norm. You are the boss; remember that. And whatever works best for you, go on and do it. So, always track and review your projects, even weekly, if you have to. Modify your workflow if a change is really needed. Or stick to it if it has been working wonders for your business.

You can do it

worktable. do more on screen

While some may say that accepting several projects simultaneously is not a good practice, it will all depend on you. Some people can handle pressure better than others. Some people are more productive if they conduct business with one client at a time. But if you have decided to take on the challenge, take these tips on managing multiple projects to heart. Yes, you can do it.

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

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Kosmo is a free All-In-One Workspace for Freelancers.

Freelance Invoice Software to Look Professional

One of the mistakes freelancers make is underestimating the value of issuing a good invoice. Gig workers must realize that they should use freelance invoice software to look professional. After all, you are running a business, and issuing a professional invoice should definitely be a part of your system. Luckily for you, there is available software online that can help you make this process easy.

Importance of an Invoice

payments sheet and laptop

An invoice, more commonly referred to as a bill, is a document that lists the products or services successfully delivered by a business. It shows the breakdown of the rates per item, the subtotal, any discounts applicable, and the total amount to be paid by the client. Businesses usually include notes at the bottom about payment terms and conditions and modes of payment.

As a freelancer, should you be issuing invoices? Yes. Most definitely.

1. Detailed Costing

Because an invoice clearly identifies the rates, this will give your client a clear summary of what they are paying for. As an added protection for you, your invoice details the exact services you have provided; therefore, any misunderstanding between you and your client regarding deliverables can be addressed immediately.

Let’s say you are a portrait painter. Your invoice can show the cost of materials used (paints, canvas, etc.) and your professional fee. This way, your client sees that you are charging them reasonably and correctly. The invoice will also prove that what you are charging them is for the agreed-upon services.

2. Official Billing

It would be very unprofessional just to send a message or an email informing your client that it is time for them to pay. Issuing an invoice makes your billing official. You are, after all, running a business, so the transaction should be legitimate. It confirms that whatever is included in the invoice is your official statement of account.

3. Record-Keeping

Of course, issuing invoices, whether online or in hardcopy, is a way for you to keep a record of your billed and paid services. There may be times when you want to check if you have already billed a client or forgot the due date of payment; a copy of your invoice will help you. It is part of complete documentation of your project with your client.

4. Bookkeeping

An invoice will make your accounting more manageable, especially when balancing profit vs. loss. If you do not have an accountant, copies of the invoices will help you keep track of your finances.

The United States Internal Revenue Service also consider invoices as legitimate supporting document when filing for your taxes.

So yes, it is a good business practice to always issue an invoice for each and every project. Besides, it will make your business look absolutely professional, and clients will take confidence in you and your business.

Freelance Invoice Software to Look Professional

Knowing how to write an invoice is important for freelancers like you. It ensures you give clear and accurate details when billing your clients. Don’t worry; an invoice is generally easy to create, especially if you have the right tools.

There are plenty of online invoice software available. Each offers different features, but the outcome is the same: you get to bill your client officially.

macbook, eye glasses

Why Use a Software?

Embrace the advantages of technology! Invoice software will absolutely help you run your business efficiently.

1. Save Time

As a freelancer, every minute of your working time counts, especially if you are doing it full-time. And because you are doing everything singlehandedly, you do not want to waste your time on tasks that can actually be done faster with the help of technology.

Imagine how much time it will take you to formulate your spreadsheet just so you can create an invoice. With you adjusting every cell and adding all the formulas needed. With invoice software, the templates are already programmed to compute each row for you. You just need to type in the amount. You can now have more time to focus on other tasks.

2. Easy to Use

Invoice software and apps are easy to use.

A good invoice software like Kosmo features easy step-by-step invoice generation through its Invoice tab. You simply input the information needed, and the software will immediately generate your invoice. For Kosmo, generating an invoice only takes four quick steps, and your invoice will be ready.

Adding information is pretty simple, as a template is already provided for you. No need for adjusting cells, margins, or alignments! Just fill in the blanks!

Invoice Items overview on Kosmo

3. Customizable

Most invoice-generating software allows you to customize your invoice. This feature is pretty important because customizing your invoice makes it more official and professional looking. Adding your own brand, like a logo, to your documents is a good way to show your clients that you are a business to be taken seriously.

Another way to customize and make an invoice more professional is to add your payment terms and conditions and identify payment modes. It is important that your invoice include this information so your client will know how to pay you and if there are any conditions you wish them to understand.

4. Ease for your Client

Because your invoice is digital, it can be quickly sent to your client through email. Your client can then receive it wherever they may be. Plus, they can download it to their devices! With such easy access to your document, they will have ample time to review it and process the payment earlier.

A Kosmo-generated invoice has a “Pay Invoice Button” where your client will be informed of your payment methods available to them. By making the payment process easy for clients, they will feel that you value their time and feel good about you. So now, you have a returning client!

5. Database

Aside from the ease of using invoice generation software, you now have a database of all your project invoices. Compared to issuing hard copies of invoices that you may misplace at some point, your records are secured and easily accessible when needed. Invoice software usually have a folder for your projects or invoice under your account where you can easily access them.

If a client requests another copy, you can easily send one because it is all saved in your account.

6. Reduce Errors

Invoice software are programmed to ensure the computations are accurate. Sending an invoice with the wrong total amount is probably one of the biggest mistakes you can make. And this is where these tools are for.

Not only that, but you can also be confident that you are sending the correct invoice to the respective client. Through the software, you can make invoices separately for each project and then save them to that specific project folder. Some platforms even incorporate the client’s email address into the project file so you can be sure you are sending the correct file to the right person. It would absolutely be a nightmare if you sent a different invoice to your client!

Convenience. Yes, the convenience and efficiency of freelance invoice software and apps will make your life easy and organized.

How to Invoice as a Consultant

In a formal profession such as being a consultant, issuing invoices is crucial, especially if you charge billable hours. In order for you to accurately charge your billable hours, you need to have excellent time tracking and time management software. By doing so, you wouldn’t miss anything when you are creating your invoice because you have a record to check. This is incredibly convenient if you have multiple clients.

Remember to note specific dates, tasks, and maybe the location where each session or meeting has transpired. Some clients will also want to double-check their own records, so better be safe to avoid conflicts.

To make things much easier in issuing invoices that are based on billable hours, use a freelance invoice software that can incorporate time tracking into the invoice. Kosmo has this great feature wherein the time tracking on your project can be added to your invoice with just one click. It’s that easy!

Making Your Invoice Look Professional

Now that you know how easy it is to use freelance invoice software to look professional, here are a few more tips for creating a professional invoice. Do take note that online invoice software offer different features. This quick guide will help you know what to look for when choosing the one most suitable for your business.

Kosmo invoice sample
  • Have a heading or banner. Every invoice you issue should have a heading or banner and this should remain constant to create familiarity with your brand. Your heading may include your name or business name, address, contact information, and other necessary links like your website or social media page. Add also a small logo of your business.
  • Other places to put your logo. When there is no option to add a heading, make sure there is at least a place where you can put your logo. Make sure your invoice will be identified with your brand easily.
  • Include Client’s Details. “Dear Mr. Jones” is a big no-no. Address your client professionally. Include their full name, company name, and address at the very least.
  • Generate Invoice Numbers. Have an invoice numbering system. This is an easy reference for you.
  • Dates are important. Invoice issue dates and payment deadlines are important. Do not forget to add them to your invoice.
  • Payment Terms. Add your payment terms. Your client will want to know your payment conditions and what the available modes of payment are.
  • “Invoice” as the title. Make sure that your document is titled. It is easy identification for your client that what you have sent is an invoice.
  • Sign your invoice. Do not forget to sign your invoice! Your signature confirms that your invoice is certified correct and officially issued by you.

Conclusion

Do not forget that as a freelancer, you must continue to practice professionalism. Now that you are running your own business, it is important that clients see you as competent and reliable. Your professionalism should reflect not only in how you deal with them but also in every aspect of your business, such as your documents and records. Maximize what technology offers you, like freelance invoice software, to look professional and reputable.

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Kosmo has everything you need to run your freelancing business.

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Kosmo is a free All-In-One Workspace for Freelancers.

Should I Freelance Full Time? When to Take the Plunge

You might be one of the many freelancers (or employees) wondering, “Should I freelance full time?” There are so many reasons to become a freelancer nowadays. But, you’re probably wondering if it’s the right path for you. The biggest leap would be becoming a freelancer after being in a corporate job for so many years. It can also be pretty challenging to start freelancing after college. Even switching from part-time and full-time can be confusing.

The point here is, there is no one right answer. It will all depend on your situation and several important factors that will be discussed below. The only person who can tell you when it’s time to take the plunge is honestly, you.

What to Consider for Freelancing Full Time

Again, when considering, “Should I freelance full time?” you can’t have anyone else answer that question for you. You are the only person who will be able to determine if it’s to finally go full-time or stick to part-time. To help you answer the question, “Should I freelance full time?” consider the following factors below:

1. Work Experience

Top view of woman sitting on chair, using a laptop on a table that has an open book, smartphone, pen, notebook, glasses, and mug

Before you take the plunge, make sure you are armed with valuable work experience that can help you not just survive as a freelancer but actually thrive as a successful one. If you are fresh out of college with zero experience and no portfolio, it will be harder to take on freelancing full-time. The best thing to do is to get valuable work experience first, which you can also get as a part-time freelancer.

It’s the worst thing when you are applying for a job only to find out the client wants you to have work experience. But that’s the reason why you want to get hired, to get work experience. So, how do you get out of this loop? By making a portfolio. As a freelancer, you get a chance to show your potential by creating sample works. For example, if you are a graphic designer, start making mock-up designs for make-believe or dream clients.

If you have good internships that can score you gigs or actually land you freelance jobs, then there may be a chance for you to become a full-time freelancer right away. The key here is you have valuable work experience that can actually set you apart from other freelancers.

2. Clients

How many clients do you currently have? Are your clients offering one-off jobs or long-term gigs? These are the factors that can help you decide whether or not you should freelance full-time. Of course, if you have zero clients or just get a few in a month, it might not be the right time to take the plunge. However, as soon as you get a steady stream of clients, then it might be time to freelance full-time.

Make sure that you create a good working relationship with your clients. Get referrals and network. Without clients, you’re not going to be able to freelance full-time, in fact, you can’t be a freelancer at all without them.

3. Industry

To answer, “Should I freelance full time?”, you also need to think about the industry you are in. For example, the advantages and disadvantages of working as a freelance paralegal will differ from the pros and cons of a freelance writer. It’s fairly common to find writing jobs and there are various clients needing a writer. Whereas a paralegal would have to narrow down clients to mainly lawyers or law firms.

If you are in a very competitive freelancing industry, you can’t immediately jump into a full-time freelancer. You might have to ease yourself into it. But that’s okay because freelancing as a side job is a viable option, too.

4. Schedule

Your schedule is one of the most important factors you have to consider. Do you have other responsibilities? Do you run a business? Are you juggling extracurricular activities? Maybe you have kids to take care of?

If your schedule is pretty much free, then go right ahead and take charge of becoming a full-time freelancer. However, if you have other things that take up your time, you might want to fix your schedule first before taking the plunge.

5. Financial Situation

Image of pocket turned inside out, coins in the palm of hands of jean's wearer

This is another major factor to consider, how much money you currently have and how much you are willing to spare. If you are straight out of school, it’s highly possible you haven’t gotten enough money or savings yet. Some are even in debt. If you are not yet financially stable, it might not be a good idea to freelance full-time.

Again, think of freelancing as a business. You will need a bit of money or capital to run your freelancing. Remember that you don’t have a regular monthly salary. So, you will need to do budgeting to find out if your freelance jobs will help you earn a profit and not just break even. The goal here is to have enough money that can sustain not just your business but your lifestyle as well.

If you do take the plunge with full-time freelancing, the least you can do is use a freelancing app to help you out. Kosmo offers excellent tools and features that help freelancers keep track of projects, clients, and more importantly, earnings. You’ll have the capacity to track how much money you earn for a given task or per hour. Do take the time to do the math so you can see if freelancing full-time is something you can live off of.

Is Freelancing Worth It?

You might be wondering if freelancing is even worth it. There’s a reason why the freelancing community is growing every single day. More and more people do side hustles or even quit their full-time corporate jobs to become full-time freelancers. But again, determining if freelancing is worth it will depend on you. Below are some factors that can help you consider if freelancing is worth it:

Priorities

You have to decide what are your priorities in life to answer this. Do you value work-life balance? Do you need work that can offer flexibility when it comes to your schedule? Maybe you have a passion for the arts and you want to do this during your free time instead of just on the weekends. If freelancing allows you to actually focus on your priorities in life then it is definitely worth it.

Maybe you don’t like it when someone is in control of the way you work. Or do you prioritize your own creativity? Freelancing is also very enticing to those who prioritize me-time or alone time. If you get a client who is output-based, you can sleep in and work whenever you want. There’s also a chance that you don’t need to collaborate with anyone else so there’s no need to compromise with decisions.

Lifestyle

Mother holding a baby while sitting in front of a desk, working on a laptop

One of the main draws of freelancing is it helps you achieve a certain lifestyle. For example, maybe you are a traveler. When you are a freelancer, you get the freedom to travel while you work. This is definitely something you can do when you are chained to a 9-to-5 job where you can only travel during time off.

Freelancing is also ideal for those with full family life. Just imagine stay-at-home moms can work and earn money while taking care of their children. You can attend to your child without any co-worker judging you or tracking your productivity and efficiency. You won’t hesitate to become a freelancer full-time if it can help you live the life you wish.

Goals

Everyone has different goals, some find it a hindrance to achieving these said goals when they are in a rigid work structure. If freelancing can help you achieve or attain your goals, then it’s more than worth it. For example, if you are an artist who wants to create their own line of sticker sets or even run an online shop, you’ll have a better shot when you are freelancing. Because some companies will not appreciate it if their employees are working on side projects during office hours.

Listing down your goals can help you answer, “Should I freelance full time?” Maybe you want to earn more money. If you have a salary, it might take more time to make your bank account grow as you only have a fixed income monthly. However, if you are a freelancer, there really is no cap on how much you can earn. But, this will take a lot of determination and maybe even a bit of luck (to find the right client).

Conclusion: So, Should I Freelance Full Time?

Person writing on a notebook

By now, you should have a clearer idea if you should freelance full-time. This can be a difficult and risky decision to make. So, it’s important that you are prepared, physically, mentally, financially, and even emotionally. Being a freelancer, you work alone most of the time and you will not have any colleagues (which can also be a good thing depending on the situation).

Just make sure when you answer, “Should I freelance full time?” you consider your own wants and needs, not anybody else’s.

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How to Start a Social Media Marketing Freelance Business

With the huge opportunities being brought about by social media platforms, many want to know how to start a social media marketing freelance business. Aside from the appealing work arrangement, it offers to marketing-savvy freelancers; the social media marketing trend has seen a rise in the past years. This has resulted in a drastic increase in demand for social media marketers. And yes, this is an easy income-generating gig, whether you go full-time or do it as a side job if you know the right direction to take.

The Global Social Media Trend

In July 2022, statistics show that 4.70 billion people are engaging in social media activities. Social media has become such a part of people’s lives that some consider it an addiction. Do you check your social media accounts the moment you wake up? Or find yourself feeling that your day is incomplete if you didn’t check at least one of your social media accounts? Some become so hooked that it has become a trend too that friends ban mobile phones during social gatherings like dinners.

Yes, social media has captured an audience so vast that businesses found this as an excellent platform for enhancing their businesses. You have seen, for sure, job placements, advertisements, corporate announcements, and other official statements being posted on social media.

Social media has definitely evolved from being a platform for connecting people and sharing stories to basically being a way of living. And this is not an exaggeration.

What is Social Media Marketing?

online marketing displayed on phone,

Simply put, social media marketing is the use of social media platforms for advertising, marketing, and other customer-centered business activities. Obviously seen as the best digital marketing tool of this generation, businesses maximize the efficiency of reach and connection of these social media platforms.

The ultimate goal of social media marketing is to, of course, drive sales. In creating a good social media marketing campaign, though, you must also think of the other benefits and advantages of these platforms. You can focus on building brand image or promoting brand loyalty. It may be as simple as making noise during a product launch to create awareness. This really depends on the business goal. But definitely, the main target is to get the business to increase its trading activities.

Fundamental Tasks of a Social Media Manager

connect to social media on tablet

If you are going to engage in a social media marketing business, you will be known as a Social Media Manager. As a social media manager, you will oversee the entire social media marketing campaign of your client. There are certain duties that you may be required to do for your client.

Strategy Creation

As a social media manager, you will need to be able to analyze the target market of your client. Remember, your goal is to capture the attention of your intended audience, meaning they have to stop scrolling the moment they see your post. So how are you going to achieve that?

Determine your market’s specific demographic, interests, language, and habits. For example, your target market is mothers. When do mothers usually check their social media? After their children left for school, maybe? There are studies released by social media platforms that show when the platforms are heavily active. So learn these data because you will need them.

You also have to know which social media platforms to utilize. For example, are mothers familiar with TikTok? Or do they use Instagram? It may not be wise to make your client spend so much on buying ad spaces on all platforms when you can already determine and recommend the ones most fitting to your market.

Keep in mind that your goal in creating your strategy is to convince the audience and turn them into paying customers.

Content Creation

This is the bulk of your work. Creating the content. You will design graphics, take relevant photographs, and even shoot short videos. For a more serious or formal client, you might need to post testimonials or short motivational speeches.

While these activities may be fun and exciting because of the creativity aspect, do not forget that it is still a business for your client. You have to anchor your content on the tone and look that will appeal most to your desired audience. If you are targeting teenagers, you have to use wisely the language with which they are familiar. You know very well that teens will not stop to look at your post if it is text-heavy, so you have to think of a creative way to capture their attention.

As a social media manager, you will be taking on the role of a graphic designer, copywriter, photographer, and videographer if need be. So you must know how to use these elements and when to use them best. Master how to make scroll-stopping, click-worthy content.

Just like how you deal with your own accounts, you need to be able to keep the client’s page updated and in with the crowd. Check the communities and trends. Know when you are getting a few views and visits so you can change your strategy. Remember, more clicks, more likes, and more views mean you are doing something right. Just be careful on sensitive matters that may be offensive to some.

This will not be a challenging task if you have a clear directive from your client on who their target market is. So, it is always a good practice to get all the details and vision from your client before you start working.

Monitoring and Reporting

Most clients will be expecting you to monitor their pages. This means checking for messages and comments and replying promptly. So polish your customer-relations skills as well. But remember, while it may seem that community page management obviously goes hand in hand with social media marketing, you do not necessarily need to do this task. It would be better to have a detailed scope of work with your client. Plus, you can actually charge additional for this service.

Of course, at the end of each agreed period, you will most probably be asked to report the impact of your campaign. Make sure you know how the analytics of each social media platform work; you will definitely need it.

How to Start a Social Media Marketing Freelance Business

LIKE spelled on scrabble tiles

Yes, it all sounds too easy, especially if you have a knack for developing creative and scroll-stopping posts. With fewer equipment investments, this could be a very profitable job. And now that you understand what your tasks will be once you start offering your services, it’s time to give you the best guides on how to start a social media marketing freelance business.

1. Go Deep on Social Media Knowledge

It is not enough that you know how to post on social media. You must have extensive knowledge of how to manipulate these platforms to your advantage.

First and foremost, it is best to master the top social networks. Now that you know that part of a good marketing strategy is understanding your audience, determine the best platforms to use for the specific demographic. While Facebook, Instagram, and Twitter may be the obvious choices, your particular market might also be actively heavy on other networks.

Learn the technical aspects of the social media platforms you’ll use. For some, different resolution specifications for visuals may change when viewed via mobile phones. Some have strict copyright terms, especially when using music. You do not want your post blocked or muted, right? Not only will your post look weak, but your client will complain about this.

Discover how the analytical tools work. This will help you manage the account better and see how you can improve. Keep in mind that the success of the campaign will translate to competence on your part, which could help you land more clients.

2. Train, Train, Train

Another great tip in exploring how to start a social media marketing freelance business is to have the relevant training you need to do the job efficiently. Look for online training programs on doing business on social media. Others even have certification courses for social media marketing. There are a lot, and some are even offered for free.

It would also help your business if you take short courses on basic graphic design, and maybe photography and videography. That way, you would know how to adjust your content to be best viewed on different platforms.

3. Get Your Office in Place

laptop, tablet, mobile phone

The best part about being a freelance social media manager is that you do not really need an actual office space to conduct your business. Set up a workstation in your house, and you are ready to go. What you would need, which is important in this job, is to have a complete set of devices. Having a desktop computer, a tablet, and a mobile device will be advantageous because you will get to see how your posts will look from all types of devices.

If you are pretty serious about your business, decide if you will want to register a business. In most cases, you would only need your tax identification number for income tax returns purposes. It would be wise to check with your local government if you need a business license.

4. Invest in the Right Tools

As a freelancer, you will be doing everything in your business. And this includes the admin duties and responsibilities. Not to worry, for as this may sound scary, it actually is not. There are a lot of online tools you can use to make admin duties easy.

Invest in a good project management tool like Kosmo. When using project management tools, you get to have access to features like time and income tracking, proposal and contract drafting, invoice generation, and payment tools. With a single software, you can do all these tasks, saving you time and energy.

Other online resources you can use are design tools for your social media cards, photo and video editing tools, and music composition tools.

5. Marketing Your Business

Now that you have basically established your business, it’s time to sell your service. Create a unique portfolio. If you do not have actual clients yet, look for startups or nonprofit organizations that may need your service. Start working on a project with them to kickstart your portfolio.

Have an amazing website and a much more impressive social media business account. Obviously, your own business pages on social media will set the standard for how well you can sell on social media. Be bold and brave. Explore your creativity and think about how you can stand out from the crowd.

Be smart when posting on job boards. Direct clients to links to your social media pages so they can see what you can actually do.

Prepare a rate card and have a good pricing scheme, such as offering packages and retainer agreements (this is where you can add your community management services). This will make transactions faster if the clients can already see your rates.

Use the knowledge and skills you have acquired from training and other courses to build up your own social media campaign first. It’s like your business is your first client!

Hello There, Social Media Manager

social media on phone

If you have the right strategies and tools for the trade becoming a social media manager is doable. What you have to put the most effort into is how to stand out from the competition. Because honestly, there are a lot of other freelance social media managers out there. The secret is knowing how to start a social media marketing freelance business, the smart way. And with the right creative and business strategy, you will definitely do well in this industry.

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Is Being a Freelance Artist Worth It – Pros and Cons

Whether you’ve been freelancing for a long time or not, you might have already wondered, “is being a freelance artist worth it?”. Usually, this happens before you take the plunge or when you have already dipped your toe and find yourself lost as you can’t seem to book gigs or get clients. If this is happening to you, hang in there, but also you might need to change up the way you work, your rates or pricing, etc.

However, if you want an in-depth answer to the question, is being a freelance artist worth it? Hang tight as below you can read the pros and cons of being a freelance artist.

Pros and Cons of Being a Freelance Artist

There are many factors to consider to be able to answer, is being a freelance artist worth it. You can’t really have a direct answer because it will all depend on these factors. It’s important to note that there are some things that may be more important to you than other freelancers. But the point is, in the end, you will be the one weighing the scale to find out if it is worth being a freelancer.

1. Time

Artist drawing on table with lamp overhead to brighten dark room

One of the best things about being a freelancer is time is pretty much in your hands. You don’t have a desk where you need to be chained for 9 hours. No boss will be tracking your productivity and you won’t have co-workers bothering you either. Now, this can be a good thing or a bad thing, depending on you.

Pro: If you are an artist who does not want to be bound by time and extreme deadlines, then it’s definitely worth it to be a freelancer. You can pretty much set your own deadlines as long as you properly discuss them with your clients. Just imagine, if you aren’t feeling inspired or creative for the day, it’s your choice to just slack off or rest. You don’t have to force yourself to spew out creativity when you aren’t really feeling it.

Con: Now, if you are more of the type of worker who has trouble keeping up with schedules, the early stages of freelancing will be tough. You have no one but yourself to rely on. There’s no HR who will tell you, you’re late. Instead, you’ll have a client who can easily walk out on you and leave you a bad review. Don’t worry though as freelance time tracking can actually be learned.

2. Clients

You may not have a boss but you’ll definitely be working with clients. It’s impossible to be a freelancer and not have a client, so this is a major factor that can either be a pro or con, depending on you.

Pro: One of the best things about being a freelancer is you can actually pick out your clients. It’s not like a company where your boss will assign a client to you. As a freelancer, you have the power to say yes or no to a project. On this alone, the question, “is being a freelancer worth it?” can be an absolute yes already for those who have trouble with authority figures aka bosses.

Con: If you have trouble talking to clients, this will be tough for you. Also, you have to keep in mind that not all clients are the same. There may come a time when you have 10 potential clients but only one of them will pay you well or will be easy to work with.

3. Niche

Laptop with a drawing on the screen, surrounded by artist's tools, paper with drawing, color swatches

When you think of a freelance artist, it’s definitely kind of broad. Just like any other industry, there are niches that freelancers must get into. You need to know your specialization, and once you pinpoint it, you’ll be able to answer the question, is being a freelance artist worth it?

Pro: If you are an artist who specializes in web design or graphic design, it might definitely be worth it to be a freelancer. According to research, web designers and graphic designers are the highest-paid freelancers in 2022.

Con: You have a higher chance of becoming a successful freelance artist if you have a niche. If you have not figured it out yet or you’d rather take on random artist jobs, then you might have a harder time in the freelancing world.

4. Earnings

One of the best ways to determine if being a freelance artist is worth it is based on the money that you make. However, some freelancers forget to also take into account the expenses. What you are really looking for here is the profit that you make.

Pro: As a freelancer, there’s the possibility to earn more than your usual salary. It all depends on your rates, your schedule, and how much work you can take on. That’s the beauty of freelancing, the sky is the limit when it comes to earnings.

Con: Freelancing does not offer steady earnings. One month can go by and you only have a couple of projects or just one client. If you are looking for stability, it is unlikely you will get it right away. It is possible, but you need to really learn how to maximize your time, especially when it comes to project acquisitions or nailing down high-paying or regular clients.

5. Future Goals

Artist in a makeshift studio, sitting on a table drawing, surrounded by art books, art tools.

Is being a freelance artist worth it can be answered by figuring out what your goal is. Are you simply an artist who doesn’t want to be confined in an office or have to work for somebody else? Or maybe, you are an artist with a bigger plan? Freelancing can be very well worth it if you are working towards a goal that can only be achieved if you don’t have a full-time job eating up your schedule and your energy.

Pro: Just imagine, you are a freelance artist and your goal is to open up your very own stationery shop. it can even be smaller, maybe you just want your own stationery line. You get to create whimsical characters and make up wonderful designs. And you can do all of these things by being a freelance artist. Freelancing gives you a lot of space and energy to focus on your goals.

Con: If you don’t really have a goal in mind, it might not be worth it to do freelancing. You need goals as this can also help you measure your success. It doesn’t have to be big, you can have simple goals for the week or month, such as breaking even with your earnings and expenditures. It is also a goal to maintain your freelancer lifestyle. However, if you are wandering through freelancing aimlessly, it’ll be hard to assess if it is actually worth it to be a freelancer artist.

6. Passion

For some artists, it’s all about passion. Is being a freelance artist worth it?—the instant answer is yes, as long as they get to do what they love to do. It may be a cliche but there is truth to the “starving artist” because really, some people are fine as long as their passions stay alive. And nothing kills passion like a 9-to-5 or having to wear corporate attire.

Pro: Freelance artists are pretty much free to do what they want to do. They can work on their art the way they want. If you have a controlling client, you can simply talk to them about not getting in the way of your creativity. Or you can simply not do the project if you aren’t compatible. Just imagine you can also do your passion project in between projects that pay.

Con: If art is not your passion, then it may not be worth it to do the freelancing route. Why even become an artist if you don’t like art, or rather making art? It is a must for artists to have inspiration and passion when creating. It’s what sets them apart from other artists, it’s what draws clients to hire them. So, if art is not your passion, maybe being a freelance artist or rather an artist is not the right path for you.

So, Is Being a Freelance Artist Worth It?

The honest answer to this question is, it depends on you. Even if you list down all of the pros and cons of being a freelancer artist, the only person who can answer this question is you. It depends on what matters to you the most. For example, if you are getting paid really well for creating social media images but your heart is set on drawing animation, do you think it’s worth it?

The good thing about the question, “is being a freelance artist worth it?” is the answer can change based on what you do. So, if you are unhappy with what you are earning in a month, it may not seem worth it to be a freelancer. But, if you change your rates and get better clients so that you can earn more, then your answer can then be, yes, it’s worth it to be a freelance artist.

Conclusion

Remember that every freelance artist is different. You may see some thriving while others are on the brink of giving up. The point here is, every artist and every freelancer is different. Is being a freelance artist worth it can have different answers depending on who you ask. But the most important thing here is your own answer and no one else’s.

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As a Freelancer Do I Need a Business License – Freelancing Tip

So, you have decided to join the freelance workforce. But then you stop. You wonder, “As a freelancer do I need a business license?” Relax; you are not alone in facing this bump on the road. A lot of freelancers ask the same thing. Of course, unlike traditional employment, freelancing is a totally different game. You do not have a team of corporate lawyers and accountants doing every legal duty for a business. This time around, it’s all you. You are the business. And if that is so, would you need a business license then?

But first, what is a business license? Why would you need one if you are required to secure it? What is it for?

Business License

stamp for business license

A business license is an official document that legalizes your business in a specific city or state. Like any other license, it signifies that you are granted authority to engage in an activity or use something. Business licenses are issued not only to protect consumers, ensuring them of the legitimacy of the establishment, but also for business owners to have security that a government body is regulating the industry.

As a freelancer do I need a business license?

This is a very valid and smart question. But unfortunately, there is no quick answer to this. There are several factors relating to your business that would determine if you do need one. In the U.S., licensing requirements and compliance vary depending on your industry. Federal, state, and local government agencies have different policies, which mainly depend on the type of business you are in. Here are some of the factors that determine whether you need a business license or not:

1. Location

map and pins

The need for a business license depends on the location of your business. Government regulations differ from country to country, state to state, and local government units. For instance, in the United States, some states issue statewide business licenses, while some states delegate the regulations per city or county. The best way for you to know if you need a business permit is to check your city or county’s website or go to the  Small Business Administration (SBA) website if you are doing freelance work from the U.S.

Speaking of location, some other organizations may require other types of licenses or permits. For example, if you are operating at home, you might want to check with your Home Owner’s Association if you need a specific permit. Or, if you decide to hold a coaching business and will need to see different clients, and you live in an apartment building, the building manager might require you to secure a permit since strangers will be entering the premises every so often. Don’t forget to check your rental agreement, too, if you are renting a place.

Again, while a city business license may not apply to your profession, it is always safe to check with your local authorities for other necessary paperwork.

2. Business Structure

The U.S. SBA declares that if you are conducting business as yourself (meaning you are using your legal name), you might not need a business license. However, if you are or will be operating under a business name, then you have to register it as a small business. Do not forget that even if you decide not to get a business license at the moment, you are still required to pay your personal income taxes.

3. Industry

tools

Do freelance photographers need a business license? How about graphic artists?

Take note, that several industries are being regulated by federal laws, like those in broadcasting, tobacco, alcoholic beverages, and gun retail (check the SBA website for a complete list); and some professions that need other types of licenses and permits such as those in the health services and food business.

While this is a general rule, the United States Small Business Administration still recommends that you check your local government, city or county, and state for their business license policies.

One thing you must keep in mind though is that while your industry—mainly if you belong to the visual arts industry, may not be required under a specific agency to register a business permit, it may be wise to secure a general business license. Why? Because remember, a business license makes your business legitimate. So whatever transaction you have with a client becomes legal, and laws protect you and your client.

Also, as you continue to grow your business and gain more clients, sooner or later, one may ask if you have a business license. For some, a business license signifies competency and professionalism. And if this can get you more clients, trust ratings, and referrals, why not get one right? The process of securing a business permit nowadays has become easy because of online submissions anyway. Plus, the process will be easier if you intend to expand soon or branch out to other locations.

4. Selling Platform

Most freelancers conduct business online. This means you do not need to see your client in person to do business. An animator, for example, can basically make all communications and project submissions without needing to sit down with the client. If this is you, then basically, you might not need a business license.

On the other hand, if you have physical property, whether rented or owned and conduct in-person meetings with your client, then you should get a business license. Do not forget to check your local zoning ordinances!

5. Earnings

Sometimes, your earnings will determine whether you need a business license or not. For example, if you have switched to purely doing freelance work, meaning you quit your day job and started earning a lot, your local tax agency might see the trend and require you to register your business. Remember, you are still declaring your income through your income tax returns.

If you are doing freelancing as a side job, let’s say just for one or two clients in your free time, then you will not usually need a business license.

Other Licenses and Permits

Check out your state’s website if you need a retail or sales tax license. These are usually required for businesses with retail activities. Remember to diligently check relevant websites for any other legal paperwork like tax permits. Of course, no one wants to be fined because of failing to submit a single document.

If you wish to operate under a business name, register your business name so you can own and protect it. An added bonus to having a registered business name is it allows you to have a business bank account. Separating your personal and business bank accounts is crucial, especially if you do not have an accountant to keep a close watch on your finances.

Conclusion

next step sign

Being a freelancer may be liberating and exciting. It does give you freedom from a monotonous daily routine, and you get total control of your time. It sure feels great knowing that you can still earn while on vacation. But you must not overlook your responsibilities and obligations if you are serious about being in the gig economy and want to have a credible name in your industry.

Note: To be on the side we recommend checking with the Small Business Association or talking to a lawyer.

“As a freelancer do I need a business license?” It depends. It depends on your location. Your industry. And business structure. But mainly, it depends on you.

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Kosmo has everything you need to run your freelancing business.

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Kosmo is a free All-In-One Workspace for Freelancers.

How to Run a Freelance Business Effectively

Fact—freelancing is no joke. This is why you must know how to run a freelance business effectively. If you are new to the market, do not jump into the gig business blindly. Plus, with the huge competition, you will be facing, you need every tip and trick you can get. If you have already started your freelancing journey, it’s still good to know the best practices to ensure your business will run smoothly.

The Gig Economy

Yes, the economy has dramatically transformed. The gig economy has grown incredibly; freelance jobs, remote work, and independent contractor services have become ideal to many. The global workforce preference has shifted to short-term, temporary employment status because of its many benefits and advantages. Sure, being your own boss and having total control over your time is one of this setup’s major perks. But in reality, with the support freelancers are getting from the rapid development of technology and the acceptance of clients or businesses to these types of working arrangements, earning has become easier.

And so like them, you have decided to start a freelance business.

How to Run a Freelance Business

Here are the best practices to guide you to make sure you can run your business effectively:

1. Come Prepared

In order for you to have a smooth and efficient running freelance business, of course, you need to be as prepared as you can get.

Set your goal.

goals planner with coffee

Why did you decide to start a freelance business? Are you going full-time, or will this be a side job? Will this business become your sole income-generating job, or are you just looking for additional earnings for a specific purpose?

Setting your main goal for starting your business is important because it anchors you to your motivation to succeed. You do not go out of the house without reason, right? You always have a purpose for going out, like where you are going, what you will do there, and why. It’s exactly the same as starting your freelance business. So why are you doing this? Where do you want this to go? How are you going to get there?

The answers to these questions will set your goal. Your goal is your map. It will be easy to stay on track when you know where you want to go.

Know the industry.

Know your industry. Check out the market and see the demand. How much are the others charging for the same service or product? Decide too, whether you will focus on a specific niche or if you will be doing general projects. For example, if you are a graphic artist, will you stick to doing animations, or will you be willing to accept other types of projects? Which could be more sustainable for you? You must also know your industry’s current trends, like the latest software or design style. You do not want to be left behind by others.

Finances.

This goes without saying. You need to know how much funding you will need to keep your business afloat. Expect that in the beginning, you might have some difficulties landing clients, so you need to have enough budget to sustain your business while focusing on marketing efforts.

Explore the market.

It is not enough that you know who your potential clients could be. Exploring the current market will expand your pool of potential customers. There may be people looking for your service outside the usual market. For instance, if you are a photographer, you may not realize that a local veterinarian is looking to have pictures of their animal patients taken. Look around you; there are potential clients just about everywhere.

2. Equip Yourself

By all means, have the necessary support and systems you can get. Remember, as a freelancer, you do not have a team to whom you can delegate specific tasks. So equip yourself with the right skills, tools, and practices on how to run a freelance business.

Keep on learning.

Because of the huge competition in the gig industry, it is important that you always have an advantage over others. Get certification for a short course or learn a new skill. Why not enroll in a short business course? Even taking yoga classes can be helpful. If you start your day with a healthy and positive mindset, you can easily manage your business.

Tools & References.

Yes, as a freelancer, you get to control your own time and pacing. The danger here is that you can mix up your personal time with your work schedule. This is why you need tools and references to help you run your business. Join groups, clubs, and organizations belonging to your same industry. Aside from getting support and business insights, you may also find yourself getting referrals for clients.

You can use scheduling software and apps so you can manage your time better, as well as avoid missing meetings or presentations. Be familiar with easy-to-use designer tools to help you with your simple creative needs like posters, calling cards, or social media posts.

If you want your freelance business to run like a well-oiled machine, here’s the secret. Invest in a complete project management software. If you use a software like Kosmo, you can track and manage your projects efficiently. Start by setting up a project folder and completing your client directory. You can then create proposals and contracts and generate invoices using their template or customizing your own. With the time tracking feature, you can indicate the time you spent per task on the project and note if it has been invoiced and paid. In addition, it has a project income overview where you can keep track of received, outstanding, and overdue payments and even set your monthly income goal.

Kosmo joining page

So you see, a project management software works like your very own project team. With the ability to track and manage your tasks, documents, and payments, running your business will be as simple as 1-2-3!

Set up your workstation.

Whether you are doing business from your house, or a rented studio, a clean and well-organized space will help you work more efficiently. You get things done faster when you feel safe and inspired in your work area.

Make sure your equipment, software, and other systems are in place. Keep in mind that when deciding on the equipment and software you will purchase, be practical. The most expensive ones in the market may not be the most suitable for you. Just the same, do not purchase the most complicated software just because everyone else is using it. Whatever works best for you, in the most time-efficient way, is what you should get.

3. Sell wisely.

Now it is time put your product or service on the market. You have to do this strategically. Do not post on each and every job board you can find. Just think, if you put an ad on every job marketplace online, you will have to spend so much time monitoring and updating them. Choose only the ones that offer more active buyers or client lists. Do not forget to check these job boards’ terms and conditions because some have charges you may not approve of.

Have a fantastic website. If you are not a website developer yourself, there are tons of website builders online. Do not use the first website maker from your search results, though. Explore different website builders and learn their features and strong points. Aside from their varying templates and styles, some may be more complicated to use than others. If you are willing to pay, compare services and offers carefully.

Social media works. This needs little explaining, for social media is basically everywhere and everything. Everything you want to know is on social media. So if you want to build an online presence, have a professional social media page. Just a reminder, do not use your personal account. You do not want your potential clients reading your mother’s comments on your latest profile picture.

Have a good pricing strategy. Know the difference between a project fee vs hourly rate and decide which one is best for you and your business. You can also use a pricing scheme like offering packages and retainer-based agreements.

Conclusion

growing seedling planted in coins

Shifting from traditional employment to freelance will not be easy. There are a lot of preparations and decisions to be made. But freelancing is definitely rewarding. The freedom from routine and corporate policies, having control over your time, and doing something you really love is totally worth it. Especially now that you know how to run a freelance business effectively.

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

Post written by:

Kosmo is a free All-In-One Workspace for Freelancers.

Freelance Time Tracking Tips and Tricks

Freelance time tracking is a skill you should learn. You might have heard of the expression, “Time is money” but it certainly is more understandable when you become a freelancer, where literally, every second counts. If you aren’t a master of scheduling, there may come a time when one small minute can offset your entire schedule and you may fail to submit deliverables on time.

One of the best things about freelancing is you aren’t chained to a desk from 9 to 5. However, that freedom comes with a price—you’ll need to learn how to track your own time. Yes, even if you get paid per project or per day, time tracking is a must so you’ll know where your minutes and hours go every day, or rather the days when you are working.

Why Freelance Time Tracking Matters

You might have heard of various timing techniques, like the Pomodoro Timer or Time Blocking. But why does it even matter? What if you are able to submit all of your deliverables and satisfy all your clients without time tracking? Well, for one thing, you aren’t a machine. Humans are bound to make mistakes but you can easily resolve problems when you have the right tools, and this includes freelance time tracking. Below are 5 reasons why time tracking is a must for freelancers:

Woman working with 2 desktop monitors and 1 laptop

1. Boosts productivity

When you are aware of the time, you will most likely do the work. This is as opposed to having several tasks listed for the day and then you can just do them whenever. The trouble with an “open-time” plan is, you don’t get to maximize your day. You might end up focusing way too much on one project while neglecting others. Or worse, you can just be resting or binging shows when you know you’re supposed to be working.

With a time tracker, you can be held accountable for your schedule, which can then help improve your performance as a freelancer.

2. Helps you create the best rates

It’s quite difficult to create rates for your work, especially when you are starting from scratch. Whether you are getting paid per project or per hour, you can have an easier time creating rates when you are time-tracking. This way, you’ll know if you are making a profit on your project.

For example, if you have a rate of $15 per hour as a virtual assistant, you need to make sure you are earning more than spending on your operational costs. You have to take into account what you spend in one hour, this includes electricity or even the coffee that you buy to be able to work at a cafe.

3. Have a record of your work

Open notebook planner with pen beside a laptop with time 14:41

When you have a lot of clients or projects going on, it’s hard to keep track of the tasks that you have done. With a time tracker, this shouldn’t be an issue. You will have a record of what you have done during the day, so when your client asks you about a specific report, you can always rely on your time tracker.

It happens, sometimes when you are working, you keep thinking, you are sure you have sent out an email to a client. Or you are sure that you have already sent a deliverable for approval. With a time tracker, you never have to wonder if you really did something because it is accounted for.

4. Reduce chances of burnout

Time tracking is not just about efficiency. It can also show you if you are overworked. A work-life balance is hard to maintain if you don’t keep track of your time. Sometimes, an entire day is dedicated solely to different projects or clients. If this continues, you’ll end up getting burnt out and that’s a difficult thing to happen to any freelancer or any worker for that matter.

So, if you see track your time, you’ll be able to see if you are actually working for 4 hours straight without breaks. It’s time to put spaces in between those hours, even just 5 minutes, to give yourself a breather.

5. Avoid clients who eat your time

When you are freelancing, you get to meet so many different clients. But one of the most challenging clients to deal with is those who eat up your time. They can call you in the middle of the day while you are focused on your project and this can really disrupt your concentration. However, if you are time-tracking, you can include this in your billable hours. Check out billing time increments to help you out.

If your client is aware that you do time tracking for billing, this can lessen the chances of those surprise calls. Or better yet, maybe they will just send you an email with all their questions and concerns instead of eating up your time.

Tips and Tricks

By now, you should have been convinced of the importance of freelance time tracking. It’s not just another task that you have to do as a freelancer. It is actually a tool that you can use to be a better freelancer and also to keep your work-life balance in check. Below are some tips and tricks that can help you stick to it:

Use a Flexible App or Software

It’s hard to keep track of time while you are working or juggling a dozen projects. So, put down your timer and try out a flexible time-tracking app or software. Kosmo is a freelancer software that already comes with tools needed for freelancing, one of which is a time tracker.

Kosmo app, start time tracker

One of the best things about Kosmo is it offers two ways to track your time. One is the traditional way, wherein you input your project as well as the specific task you need to complete and then hit the start button. Once you are done, just hit Stop and it will be automatically added to your list.

Kosmo app, add hours for time tracking

Now, there are some people who are not comfortable working with a timer. Or maybe you just forgot to hit start. Don’t worry as Kosmo allows you to add your own time, too. Just add the project details and the date when you worked, then input the number of hours, minutes, and seconds. This will then be added to your list, too.

Don’t Forget to Pause

When you are working on a project, it’s advisable to take breaks. In fact, it might not be a good thing to sit in front of your computer for several hours straight. So, do take a break when you are time-tracking. And of course, do not include this under your billable hours.

Break it Down

One of the biggest problems freelancers makes when time tracking is not breaking down tasks. When you put it into your schedule, “Project A”, can be overwhelming. What you need to do is to chop it up. For example, if you are an artist, you can break your tasks into doing research, sketching, coloring, erasing, and touch-ups. Don’t just put make a portrait on your schedule as this will be difficult to track.

Find your Technique

There are many ways that you can track your time effectively. Know that if your fellow freelancer is using a time-blocking sheet and it works for them, it doesn’t necessarily mean it will work for you. Finding a technique is really all about trial and error. However, if you find the right one, time tracking will not be difficult. What’s important is you find one that works for you.

A good tip is to take time tracking step by step and see the big picture before getting into the little details. So, go ahead and make a calendar template, and lay out all of your plans and projects for the entire month. Once that is done, you can now do a weekly planner. Once you get the hang of that, it’s time to go daily, then track by AM or PM, then hourly, and so on.

Reduce Distractions

It can be very difficult to stick to using a time tracker mainly because of your environment. If you work at home, make sure you are in a space where there are no distractions. Just imagine you are on the clock and you have to hit pause every time there is something to attend to, like your cat asking for food, a phone call, or someone ringing the doorbell.

Time blocking can be very helpful for those stay-at-home freelancers. You have to set a time specifically for work and specifically for tasks. It might also help to go to a quiet coffee shop or a co-working space.

Conclusion

Full desk setup with monitor, laptop, speaker, small lamp, keyboard, trackpad, tablet, and mobile phone

The good thing about freelance time tracking is that it is a discipline. It is something that you can practice every day until you get the hang of it. Yes, at first it can be difficult, you might forget to click the start button on your timer. That’s okay, it happens. But what’s important is that you get into the habit of tracking your time.

Every time you receive a phone call from your client, write it down and log it so that you can be compensated for your time. Time tracking is for you so that you get the pay that you deserve. If you want to become successful as a freelancer or if you want to grow your business, freelance time tracking is an excellent discipline to master and utilize.

Get Organized & Win More Clients

Kosmo has everything you need to run your freelancing business.

Post written by:

Kosmo is a free All-In-One Workspace for Freelancers.